ShareBuilder 401k is waiving setup charges of up to $750 through May 23, with the aim of making it easier for small businesses to provide retirement benefits to their employees while creating a tax benefit.
“ShareBuilder 401k wants to make it easy and affordable for any size businesses to offer retirement plans to their employees including the self-employed,” said Stuart Robertson, president and CEO of ShareBuilder 401k. “With our free setup offer, low-expense solutions, and tax credits from the Secure Act 2.0, small businesses can start a no to low-cost 401(k) and help their employees, and themselves build for a secure retirement while lowering personal taxes, too.”
Passed in late 2022, Secure Act 2.0 eliminates most cost barriers for small businesses with employees. Businesses with employees who are starting their first 401(k) can qualify for tax credits which can offset ongoing administrative costs and applicable employer matching contributions too. For companies with 1 to 50 employees, the tax credits for employer admin costs are dollar for dollar up to $5,000 for each of the first three years of starting a 401(k). Most small businesses with employees will spend much less to offer a plan and can expect to spend $1,000 to $2,000 annually. Other tax credits and deductions help cover matching contributions an employer may choose to provide.
Note that while the self-employed starting a Solo 401(k) are not eligible for these tax credits, any setup or ongoing support costs are generally tax deductible for their business, ShareBuilder 401k adds.
Ascensus announced a new partnership with Janusea to deliver a financial technology solution that streamlines individual retirement account (IRA) and health savings account (HSA) administration for financial institutions.
Janusea’s product creates an integration between Ascensus’ technology platform and banks and credit unions, eliminating manual, dual entry of IRA and HSA transactions.